Western Cape High Court strikes attorney off the roll over misappropriation of client funds
The Special Investigating Unit (SIU) has successfully obtained a preservation order freezing the pension benefits of a former Tembisa Hospital supply chain clerk, alongside a luxury property valued at about R6.4m, amid allegations of large-scale procurement corruption at the facility.
The former official, Duduzile Nkosazana Nobungwana, is accused of being part of a wider syndicate allegedly responsible for irregular tenders and procurement activities that contributed to losses of around R2bn at the hospital.
According to the SIU, Nobungwana began working at the hospital in 1992 as a general assistant and later rose to a senior supply chain role, including serving on a vetting committee.She reportedly resigned during a disciplinary process in 2024.
Investigators allege she assisted a company linked to businessman Stefan Govindraju, through irregular tender processes that failed to comply with procurement regulations, including appointing suppliers not properly registered with the South African Health Products Regulatory Authority.
The SIU further alleges that Nobungwana received undisclosed financial benefits from suppliers, with some of the alleged payments routed through a front company, Mabitwa Trading, to finance the purchase of a Midstream Estate property registered under a company controlled by her son.The property has now been preserved to prevent its sale pending legal proceedings.
Investigations also point to a broader network referred to as “Syndicate X”, linked to Govindraju, whose companies allegedly secured over 1,200 contracts through irregular procurement processes, receiving payments exceeding R596m.The SIU estimates that around R100m may have been paid as alleged kickbacks to officials involved in supply chain management.In addition to freezing the property, the SIU secured an interdict preventing the Government Employees Pension Fund from paying out Nobungwana’s R1.8m pension until civil recovery proceedings are concluded.
Authorities say the preserved assets may ultimately be used to compensate the state for losses incurred through alleged corruption and irregular expenditure.